The Hang Seng Index could have room to rise after U employment and new home starts data were better than expected, showing that the world's biggest economy is emerging from the global financial crisis, but fourth quarter gross domestic product (GDP) data from China, early on Friday will probably hold the key to whether the benchmark index gains ground.

Hang Seng Index on Thursday dipped 17 points to stand above a 10-day moving average while the Hang Seng China Enterprises Index lost 49 points as A shares fell on Thursday.

The current consensus forecast is for chinese GDP growth of 7.8 per cent in the last quarter of 2012, compared with a 7.4 per cent trough in the third quarter.